HMRC Country by Country reporting updates | KPMG | UK

HMRC Country by Country reporting updates

HMRC Country by Country reporting updates

The XML schema for CbC reports being filed in the UK has been published by HMRC, along with guidance.

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With the end of the year fast approaching, HMRC has released guidance on 15 August 2017, confirming the format and method of filing Country by Country (CbC) reports that are due in the UK. CbC reports must be prepared using the XML schema format provided by the OECD. HMRC have also prescribed their own procedures that must be followed, and CbC reports due to be filed in the UK must be filed using the HMRC reporting service, which is expected to be available soon. Only reports in this approved format will be accepted for electronic filing by HMRC.

Along with confirming the schema format required for CbC reports being filed in the UK, guidance on preparing and filing the reports has been published. The guidance covers recent updates to the HMRC International Exchange of Information Manual (the Manual), including:

  • Groups which must complete a report
    The guidance covers which Groups should complete a report, and who should file it. It also refers to the updated Manual which covers the tests for entities and MNE groups that are within the scope of CbC reporting. The Manual also includes the definition of the Ultimate Parent Entity, which has the same meaning as the OECD model except that it must be tax resident in the UK if it is a company, or it must be formed or organised under UK law if it is a partnership.
  • Notifying HMRC
    Details of how to notify HMRC about a CbC filing requirement, along with email and postal addresses of where to make the notification, have been included in the guidance. Taxpayers will have until the later of 1 September 2017 and the end of the reportable period to do this.
  • Exceptions to the filing obligation
    A UK entity may not be required to file a CbC report if it can apply one of two exceptions. If it plans to apply one of the exceptions, it must notify HMRC by the later of 1 September 2017 and the end of the reportable period.

It is also worth noting that the XML file will require a Tax Identification Number (TIN) for each Constituent Entity in the CbC report and so groups should take steps to start to collate this information now.

For further information please contact:

Judith Gibbs

Rachelle Leung

 

 

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